Read These Books!

Monday, June 6, 2016

That was the reply from a VP for sales at Brown Forman, the big booze maker when I asked if it was viable to clear $5 a case on sales of 10,000 cases per year, given regulations etc...

Why would anyone want to make only $50,000 in the beer business? Well, when your business is your lifestyle, and after paying for your lifestyle, you had $50,000 left over, wouldn't be worth it to anyone?

I can think of plenty of people who would take that gig. In the meantime, we may need them soon enough. Stockman again, like a High School auto shop teacher, explains how everything works in this economy, their economy:

As a case in point, the $46 billion of bonds sold by the owners of Budweiser last night where priced at a ten-year yield of 3.67%, which means that after taxes and inflation, the company’s borrowing cost was hardly 1%. Yet, as explained more fully below, the only point of this massive offering was to fund with nearly free long-term capital the huge payday for speculators in SABMiller stock that will result from the $120 billion Anheuser-Busch InBev (BUD) takeover transaction.

Keep that in mind… it is not about the companies and long term goal, it all about the upfront payday to the dealmakers. These are the patterns and practices of capitalism as enshrined in our laws. We need free markets. Deregulate banks first, everything else false economy will wither. Another great textbook chapter.